Motivation & Leadership

Question 1

Importance of Motivated Staff

Answer 1

Motivated staff will lead to:
- increased productivity
- lower absenteeism
- higher quality production
- lower staff turnover
- better reputation

If a company’s employees are motivated they will be more likely to apply themselves and take a greater pride in their work which will result in a higher quality product or service.
Employees who are motivated will be less likely to leave the company, therefore less time and money will be spent on recruiting and retraining new staff.

Question 2

Methods of Motivation

Answer 2

It is the role of the manager to ensure employees within the organisation are motivated. There are several methods a manager can use to achieve this. These can be divided into:
financial methods and non-financial methods

Question 3

Time Rate
(financial methods of motivation)

Answer 3

Employees are paid for the exact time that they work at a set amount per hour or per day. The more hours or days an employee works the larger wage they will receive.

Question 4

Piece-rate
(financial methods of motivation)

Answer 4

Employees are paid per item they produce. The more productive an employee is the higher the wage they will receive. This will encourage people to work harder and produce more.

Question 5

Commission
(financial methods of motivation)

Answer 5

Employees are paid a percentage of the value of their sales. Employees are encouraged to sell more as the higher their sales the more commission they will receive.

Question 6

Performance-related pay
(financial methods of motivation)

Answer 6

Employees who reach a certain standard or achieve a certain target will be given a pay rise.

Question 7

Bonus
(financial methods of motivation)

Answer 7

Employees are paid an additional amount on top of their basic salary for achieving targets set by the organisation.

Question 8

Fair Salary
(financial methods of motivation)

Answer 8

A fixed amount of money paid to an employee each year usually in 12 equal instalments. This salary needs to be representative of the work the employee is completing.

Question 9

Profit Sharing
(financial methods of motivation)

Answer 9

Employees will receive a share or percentage of profit made by organisation. This will motivate employees to work productively because the more profitable the organisation is the more money the employee will receive.

Question 10

Flexible working practices
(non-financial methods of motivation)

Answer 10

Gives employees flexibility over when, where and how many hours they work. There are different types of flexible working practices such as:
- part-time
- job share
- homeworking
- flexitime
Flexible working practices such as job share, homeworking and flexitime allow staff to achieve a better work life balance. E.g. employees can schedule time to deal with family and personal needs during working hours. This flexibility has the benefit of reducing staff absenteeism and also allows companies to retain staff who may not be able to fulfil a full-time position.

Question 11

Working Environment
(non-financial methods of motivation)

Answer 11

A positive work environment can help sustain workers’ motivation throughout the day. The working environment can be kept positive through:
- providing advanced and effective technology
- providing a comfortable work area
- good employee communication

Question 12

Training and Staff Development
(non-financial methods of motivation)

Answer 12

Employees who know that an organisation is willing to invest in their training and development will be more motivated to work well for the organisation.

Question 13

Promotion and Recognition
(non-financial methods of motivation)

Answer 13

If employees are able to see a clear
promotion route available within an organisation they are more likely to work hard and be more motivated to succeed. If employees are praised for the work they do and it is recognised within the organisation, this will become a motivating factor.

Question 14

Worker Participation
(non-financial methods of motivation)

Answer 14

Encourages employees to become involved in the decision-making process, this can lead to employees feeling more valued.

Question 15

Fringe Benefits
(non-financial methods of motivation)

Answer 15

This is when extra benefits are given in addition to an employee’s wage or salary. Fringe benefits can include:
- gym membership
- company car
- health insurance
- free childcare

Question 16

Job Enrichment
(non-financial methods of motivation)

Answer 16

Employees are given greater responsibility or more demanding tasks to make their jobs more interesting and challenging.

Question 17

Job Rotation
(non-financial methods of motivation)

Answer 17

A member of staff is rotated or moved through different jobs within the organisation so they acquire a range of skills from each department or job role. This will make their job more interesting and challenging which can lead to more motivated employees.

Question 18

Maslow’s Theory

Answer 18

Maslow was an American psychologist. He suggested there are five hierarchies or levels of need that explain how people are motivated.

A person will start at the bottom of the hierarchy and will seek to satisfy each need in order. Once the first ‘physiological’ need is satisfied it no longer acts as a motivator.

Question 19

Maslow Needs and Implications

Answer 19

Need - Physiological
Implication - Providing staff with basic pay and a safe working environment
Need - Safety
Implication - Ensuring staff have job security through permanent contracts
Need - Belonging
Implication - Creating good communication in the work place, providing support and encouraging team work
Need - Esteem
Implication - Providing recognition to employees through promotions or praise
Need - Self-actualisation
Implication - Providing opportunities for promotion, creativity and challenge

Question 20

Hertzberg’s Theory

Answer 20

Another American psychologist, Frederick Irving Hertzberg believed that people are motivated by two sets of factors:
motivator factors - result in job satisfaction and increase motivation

hygiene factors - do not increase motivation but the motivation of employees may fall if these are not present

Question 21

Hygiene Factors
(prevent dissatisfaction)

Answer 21

• Fair Salary
• Company Policies
• Quality of Supervision
• Working Conditions
• Job Security
• Interpersonal Relationships
• Work/life balance
• Working equipment

Question 22

Motivator Factors
(increases motivation)

Answer 22

• Promotion Opportunities
• Responsibility
• Recognition
• Challenging Work
• Sense of personal achievement
• Personal growth
• Advancement

Question 23

Autocratic
(styles of leadership)

Answer 23

Involves:
- managers making all the decisions
without consulting with employees
- decisions are made from the top
down
- employees are told what to do
ADVANTAGES:
- decisions made quickly
- decisions made by most
experienced members of
organisation
- employees have clear instructions of
requirements
DISADVANTAGES:
- employee ideas and creativity may not be considered
- employees may become
demotivated by lack of input or
responsibility
- amount of decision making can be
stressful for managers

Question 24

Laissez-faire
(styles of leadership)

Answer 24

involves:
- managers letting employees get on with jobs with as little interference as possible
- employees allowed to make decisions and solve problems on their own with little guidance from management
- management will only step in if they are needed
ADVANTAGES:
- effective in situations where staff are highly skilled and motivated
- employees may feel empowered and motived by their responsibility
- leaves room for innovative decision making
DISADVANTAGES:
- poor performance can result if inexperienced staff are left without direction
- employees may feel pressured if they have no support - leading to demotivation and stress
- it is unclear who takes responsibility

Question 25

Democratic
(styles of leadership)

Answer 25

involves:
- managers and employees working together to make decisions
- a consultative management style
- employees are encouraged to communicate ideas to management
ADVANTAGES:
- highly motivated employees who feel empowered
- employees are better prepared for promotion
- employees more accepting of change within the organisation
DISADVANTAGES:
- decision making can take time
- a strong leader is required to lead discussions and supervise employees